Income Tax Slab Rate for Assessment Year 2017-18 (FY 2016-17)

Income Tax Slabs in India

The Income Tax slab rates are different for different categories of taxpayers. We can divide Income Tax slab rates for the following categories:

·         Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person

·         resident senior citizen

·         resident super senior citizen

·         partnership firm

·         local authority

·         domestic company

·         foreign company

·         For a co-operative society

Income Tax Slab Rates for Assessment Year 2017-18

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For Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Income Range (in Rupees)	Tax Rate (in %age)
Zero – 2,50,000	Nil
2,50,000-5,00,000	10%
5,00,000-10,00,000	20%
Above 10,00,000	30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs. 5,00,000. The maximum amount of rebate allowed is Rs. 5,000. Add: Surcharge – A surcharge @ 15% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief as stated: ·         If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For resident senior citizen (between 60 and 80 years of age)

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Income Range (in Rupees)	Tax Rate (in %age)
Zero – 3,00,000	Nil
3,00,000-5,00,000	10%
5,00,000-10,00,000	20%
Above 10,00,000	30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs. 5,00,000. The maximum amount of rebate allowed is Rs. 5,000. Add: Surcharge – A surcharge @ 15% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief. ·         If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For resident super senior citizen (80 years and above)

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Income Range (in Rupees)	Tax Rate (in %age)
Zero – 5,00,000	Nil
5,00,000 – 10,00,000	20%
Above 10,00,000	30%
Add: Surcharge – A surcharge @ 15% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief. ·         If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For a partnership firm (including LLP)

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Tax Rate	Surcharge	Education Cess	Secondary & Higher Education Cess
30%	12%	2%	1%
Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief. ·         If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. Add: Education Cess – It is also applicable only when income exceeds Rs. 1 crore. The rate of surcharge is 2% of income tax plus surcharge. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For a local authority

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Tax Rate	Surcharge	Education Cess	Secondary & Higher Education Cess
30%	12%	2%	1%
Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief. ·         If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For a domestic company

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Tax Rate	Surcharge	Education Cess	Secondary & Higher Education Cess
29% for income up to Rs. 5 crore	7% for income between Rs. 1 crore & Rs. 10 crore	2% of income tax plus surcharge	1% of income tax plus surcharge
30% for income exceeding Rs. 5 crore	7% for income between Rs. 1 crore & Rs. 10 crore and 12% if income exceeds Rs. 10 crore
Add: Surcharge – A surcharge @ 7% or 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief. ·         If income lies between Rs. 1 crore & Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. ·         If income exceeds Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 10 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For a foreign company

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Tax Rate	Surcharge		Education Cess	Secondary & Higher Education Cess
	Income b/w Rs. 1 crore & Rs.10 crore	Income exceeds Rs. 10 crore
50% on royalty received from government or Indian concern*	2%	5%	2%	1%
40% on any other income	2%	5%
*Note: Royalty here means – ·         Royalty received from government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961 and 31 March, 1976 ·         Fees for providing technical services in pursuance of an agreement (approved by Central government) made between February 29, 1964 and April 1, 1976 Add: Surcharge – A surcharge is applicable in the following 2 conditions subject to marginal relief: ·         If income lies between Rs. 1 crore & Rs. 10 crore, the applicable surcharge should be 2%. ·         If income exceeds Rs. 10 crore, the applicable surcharge should be 5%. Marginal Relief on Surcharge – ·         If income lies between Rs. 1 crore & Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. ·         If income exceeds Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 10 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

For a Co-operative Society

Slab Rates for A.Y. 2017-18 (F.Y. 2016-17)

Income Range (in Rupees)	Tax Rate (in %age)
Zero – 10,000	Nil
10,000-20,000	20%
Above 20,000	30%
Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief as stated: ·         If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore. Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.